One of South Korea’s largest digital currency exchanges, Bithumb, has announced plans to open a global decentralised exchange, news outlet Business Korea has reported.
According to the report, the move, which was announced on Wednesday, is part of Bithumb’s plan to expand its business to the global market, where it will be able to continue to grow unrestricted by the regulatory challenges present in its domestic market. Business Korea quoted an “official from the industry”, who expressed a similar opinion:
“Bithumb is one of the leading global exchanges in terms of transactions but it is true that most of its users are Korean,” the unnamed official said, as quoted by Business Korea. “The latest decision seems to be the company’s strategy to compete with other leading exchanges in the global market by opening a decentralized exchange that receives attention in the global market.”
Bithumb plans to launch the new exchange, dubbed Bithumb DEX, through an overseas subsidiary by the end of the month. The company is working with global blockchain firm One Root Network (RNT), which already operates a decentralised exchange and will provide the technical support for Bithumb’s new business venture.
Bithumb believe that the launch of Bithumb DEX would allow it to increase security and diversify its services. A decentralised exchange does not keep directly keep cryptocurrencies, but rather facilitates trading between the cryptocurrency wallets of individual users. Because of this, such platforms are less likely to be targeted by hackers than centralised digital currency exchanges. Bithumb’s chief domestic rival, Upbit, has made an investment in a decentralised exchange called Allbit, Business Korea notes.
Bithumb suffered a cyber-attack earlier this summer, with some $17 million worth of digital tokens lost as a result of the heist. Bithumb’s trading volume sook a massive hit in the weeks following the hack, as company’ banking partner Nonghyup Bank suspended its services to the exchange. Bithumb regained the bank’s support in late August, which allowed it to return among the top 10 crypto exchanges by trading volume.